Britain has broken its record for using energy generated from sources other than coal during the hot Easter weekend.
National Grid said the UK recorded its longest ever continuous coal-free period over the bank holiday weekend, lasting more than 90 hours.
It marks the longest stretch of time in which the UK’s electricity has been produced by other means since before the industrial revolution, which began in the 1700s.
The 90-hour mark, which ran up to Monday afternoon, well outpaced the previous record of 76 hours set in April 2018.
Duncan Burt, director of operations at National Grid, said the long weekend marked “another significant step towards a zero-carbon power grid” in the UK.
Wales, Scotland and Northern Ireland each enjoyed their warmest Easter Sunday on record, according to the Met Office said.
Mr Burt said the previous record was broken thanks to a “sweet spot” in conditions, where the warm weather stopped people from using their central heating, overall energy usage went down due to more people being outside, but temperatures were not so warm that people needed to stay indoors and use air conditioning.
He said ideal conditions for the National Grid see warm sunshine in the south and wind in the North and in Scotland, creating conditions that mean a high production of both solar and wind power.
Over the bank holiday, gas still made up a sizeable chunk of electricity usage, and Britain was still required to import power from Europe. Nuclear energy made up about 25 per cent.
A report published by the Department for Business, Energy and Industrial Strategy’s (BEIS) earlier this year showed the UK used more coal-free power in the first three months of 2019 than in the entirety of 2017.
Energy and Clean Growth minister Claire Perry said: “Coal is the most polluting fossil fuel, which is why we’ve committed to phasing it out entirely from our energy mix by 2025 as we help lead the world in the transition to cleaner technologies.”
But environmental campaigners have warned that while an increase in renewable energy is positive, gas and other fossil fuels are also replacing coal.
Muna Suleiman, climate campaigner at Friends of the Earth, told the BBC: “89 hours of coal-free electricity is great, but let’s make this all day every day.
“Electricity generated by renewable sources is a key part of the fight against climate chaos, so it’s time to remove all the blockers to renewable energy.
“The Government must prioritise the development of sources such as solar and onshore wind.”
The Labour Party has also questioned Government policy, and said its fracking plans will release the same amount of carbon dioxide into the atmosphere as creating 300 million brand news cars.
A reliance on gas also makes the UK vulnerable to international markets, according to Friends of the Earth, which said the energy source isn’t clean enough to cut greenhouse gas emissions in line with the country’s legal targets.
The 2008 Climate Change Act requires greenhouse gas emissions to be reduced by 80 per cent – when compared to 1990 levels – by 2050.
Source: inews.co.uk
Labour will end slum office housing
/in Home Page news feed, NewsLabour says it would scrap a government scheme that allows offices and industrial buildings to be converted into homes without planning permission.
The party said changes to permitted development rules in England had led to the creation of “slum housing and rabbit hutch flats”.
It also said developers had been able to avoid building affordable homes.
The Conservatives said the plans would “cut house building and put a stop to people achieving home ownership”.
In 2013, the government changed planning rules to allow developers to turn offices, warehouses and industrial buildings into residential blocks without getting permission from the local council, in a bid to boost house building.
The rules have since been further relaxed, leading to 42,000 new dwellings being created from former offices in the last few years.
However, permitted development schemes are exempt from official space standards and also from any requirement to provide affordable homes.
Labour said the policy had seen the loss of more than 10,000 affordable homes, and meant that flats “just a few feet wide” were now counted in official statistics as new homes.
It said its policy was still to build 250,000 new homes a year in England with 100,000 being “genuinely affordable”.
“This Conservative housing free-for-all gives developers a free hand to build what they want but ignore what local communities need,” said John Healey, Labour’s shadow housing secretary.
“Labour will give local people control over the housing that gets built in their area and ensure developers build the low-cost, high-quality homes that the country needs.”
In one permitted development scheme at Newbury House in Ilford, an office block has been turned into 60 flats measuring as little as 13 sq metres each.
According to national space standards, the minimum floor area for a new one-bedroom one-person home is 37 sq metres.
Critics say the schemes can be damaging to residents’ mental wellbeing, as well as being miles from amenities and conducive to crime.
At Terminus House – a converted office block in Harlow – crime jumped 45% in the first 10 months after people moved in and by 20% within that part of the town centre.
However some developers warn that without permitted development many office to residential schemes would no longer be viable.
The government says the rules are helping tackle the housing crisis and allowing people to get on the housing ladder.
Of the 13,526 homes delivered under permitted development last year, more than three quarters were built outside of London
Marcus Jones, Conservative vice-chair for Local Government, said: “Labour’s plans would cut house building and put a stop to people achieving homeownership.
“We are backing permitted development rights, which are converting dormant offices into places families can call home.
“Whilst Labour put politics before our families, the Conservatives are delivering the houses this country needs so every family has a place to call home.”
Source: BBC.co.uk
UK goes coal-free for record-breaking 90 hours during hot Easter weekend weather
/in Home Page news feed, NewsBritain has broken its record for using energy generated from sources other than coal during the hot Easter weekend.
National Grid said the UK recorded its longest ever continuous coal-free period over the bank holiday weekend, lasting more than 90 hours.
It marks the longest stretch of time in which the UK’s electricity has been produced by other means since before the industrial revolution, which began in the 1700s.
Duncan Burt, director of operations at National Grid, said the long weekend marked “another significant step towards a zero-carbon power grid” in the UK.
Wales, Scotland and Northern Ireland each enjoyed their warmest Easter Sunday on record, according to the Met Office said.
Mr Burt said the previous record was broken thanks to a “sweet spot” in conditions, where the warm weather stopped people from using their central heating, overall energy usage went down due to more people being outside, but temperatures were not so warm that people needed to stay indoors and use air conditioning.
He said ideal conditions for the National Grid see warm sunshine in the south and wind in the North and in Scotland, creating conditions that mean a high production of both solar and wind power.
Over the bank holiday, gas still made up a sizeable chunk of electricity usage, and Britain was still required to import power from Europe. Nuclear energy made up about 25 per cent.
A report published by the Department for Business, Energy and Industrial Strategy’s (BEIS) earlier this year showed the UK used more coal-free power in the first three months of 2019 than in the entirety of 2017.
Energy and Clean Growth minister Claire Perry said: “Coal is the most polluting fossil fuel, which is why we’ve committed to phasing it out entirely from our energy mix by 2025 as we help lead the world in the transition to cleaner technologies.”
But environmental campaigners have warned that while an increase in renewable energy is positive, gas and other fossil fuels are also replacing coal.
Muna Suleiman, climate campaigner at Friends of the Earth, told the BBC: “89 hours of coal-free electricity is great, but let’s make this all day every day.
“Electricity generated by renewable sources is a key part of the fight against climate chaos, so it’s time to remove all the blockers to renewable energy.
“The Government must prioritise the development of sources such as solar and onshore wind.”
The Labour Party has also questioned Government policy, and said its fracking plans will release the same amount of carbon dioxide into the atmosphere as creating 300 million brand news cars.
A reliance on gas also makes the UK vulnerable to international markets, according to Friends of the Earth, which said the energy source isn’t clean enough to cut greenhouse gas emissions in line with the country’s legal targets.
The 2008 Climate Change Act requires greenhouse gas emissions to be reduced by 80 per cent – when compared to 1990 levels – by 2050.
Source: inews.co.uk
SME contractors agree 2.75% pay deal for workers
/in Home Page news feed, NewsEmployers and unions have agreed a 2.75% pay rise for construction workers under the Building and Allied Trades Joint Industrial Council (BATJIC) agreement.
The increase is below last year’s 3.1% rise and will come into effect from June.
The one-year-deal follows successful talks between the the Federation of Master Builders (FMB) and Unite the union.
BATJIC has also secured tax dispensation from HM Revenue and Customs for Lodging Allowance and Daily Fares Allowance for this year’s Working Rule Agreement after several years’ hiatus.
Brian Berry, Chief Executive of the FMB, said: “This agreement strikes the right balance as it recognises the hard work that employees are putting into their work but at the same time, it reflects the uncertainty that many construction firms are facing.
“This increase is above last year’s rate of inflation, according to all three of the leading indexes, and sends out a strong message to tradespeople that we value them and want to retain them.
“It’s no secret that economic forecasts are quite conservative for the years ahead, given the unknown impact of Brexit, but I feel this is a good compromise from the perspective of both employers and workers.”
Jerry Swain, the National Officer for Construction at Unite the union, said: “Unite welcomes this agreement which recognises inflation levels from last year and the high employment levels that we have at present.
With construction skills shortages impacting on the industry, a 2.75 per cent pay rise will help encourage tradespeople to remain in the industry at a time when the current political uncertainty and drops in construction output are affecting confidence in the industry.
“I’m pleased that BATJIC has been further strengthened this year by successfully jointly lobbying for tax dispensation on key employee expenses.
“It was important that we secured the dispensation from HMRC in respect of lodge payments, as this now formalises the position regarding taxation of lodge payments.
“The dispensation gives peace of mind to our members and ensures that they will not face any claims for retrospective payment of tax when receiving lodge payments while working away from home.”
Source: Construction Enquirer
New pre-qualification system aims to save £1bn a year
/in Home Page news feed, NewsBuild UK and the Civil Engineering Contractors Association (CECA) have launched the first phase of a new pre-qualification (PQ) system that they claim will cut bureaucracy in the sector.
The trade bodies said the current PQ system is complex and estimated that it costs the industry up to £1bn a year. Currently, the multitude of schemes in operation see around 180,000 specialist contractors producing two million pieces of paper every year for 5,000 contractors, the organisations claimed.
The roll-out of the first phase of their new system, which aims to make the industry more efficient, includes:
Publication of the Common Assessment Standard used to pre-qualify companies. Based on existing PQ questionnaires, including BSI’s PAS 91, this covers 10 key areas and includes desktop and site-based assessment standards.
Confirmation of the first recognised assessment bodies to certify companies against the Common Assessment Standard. These organisations are Achilles, CHAS and Constructionline.
The system is being overseen by an interim cross-industry body consisting of experts from organisations across the sector, including public and private sector clients, contractors and trade associations.
Once the new system is fully up and running, companies will not have to be certified by more than one recognised assessment body. A data sharing arrangement is currently being developed which will allow contractors to obtain PQ information from any one of the recognised assessment bodies. Contractors will be transitioning to the new system over the coming months.
Jo Fautley, deputy chief executive of Build UK, said: “The construction industry is making great strides towards more collaborative working and this new PQ system has been developed by industry, for industry, based on standards that clients, contractors and the supply chain have all agreed on. We look forward to the industry getting on board with it over the coming months so we can realise the efficiency gains for everyone’s benefit and boost overall productivity.”
Marie-Claude Hemming, director of external affairs at CECA, said: “CECA has long advocated an industry standard approach to PQ and the new system which builds on PAS 91 will simplify the process and reduce duplication and cost. Change takes time and there will be a transition period, but this marks the start of the rollout of the new system which we anticipate will play a key role in the future delivery of world-class infrastructure.”
Ann Bentley, chair of the Construction Leadership Council business model workstream, said: “The Construction Leadership Council welcomes and supports the proposed reform of the current PQ process – it is a real and practical way of reducing bureaucracy and improving quality in the procurement process. Companies will be able to demonstrate that they meet an agreed industry standard and clients and contractors will be able to rely on the certification. The CLC will be encouraging adoption of the revised standard throughout Government construction procurement.”
Source: Construction Enquirer
Call for Occupational Health Training
/in Home Page news feed, NewsConstruction companies of all sizes are being urged to provide at least one employee with occupational (OH) awareness training following a new report from Loughborough University which highlighted the lack of training particularly in SMEs.
The report from Loughborough University, Improving occupational health risk management in SMEs: the role of major projects, looked into how major projects such as the construction of the Defence and National Rehabilitation Centre (DNRC) can support their supply chain to develop good practices in occupational health.
The research, which was carried out in the School of Architecture, Building and Civil Engineering at Loughborough University, was made possible after they were named recipients of the B&CE Charitable Trust OH Research Award 2016 worth £25,000.
In light of the report’s findings, B&CE are calling for Occupational Health Training to be more commonplace within all sizes of organisations, plus improved training materials and increased education regarding OH obligations.
Commenting, Margaret Grahamslaw, Head of Occupational Health at B&CE, said: “These recommendations centre around the importance of training in occupational health awareness to ultimately improve the wellbeing of workers in the construction industry across the UK. By ensuring at least one member of staff in any company, regardless of size, is trained in this area, this can encourage the spread of knowledge in both common OH issues and those that are less well understood.
“We’re grateful that our charitable trust could provide Loughborough University with the funds to facilitate this important research and look forward to using our joint voices in the industry to make these recommendations a reality in construction.”
Lead researcher, Dr Wendy Jones, Loughborough University said: “Health often ends up as the poor relation of safety in construction, and it can be particularly difficult for smaller companies that don’t always have the right expertise, or who have limited budgets, to get the right arrangements in place. This research found that some small and micro employers are improving their management of hazards such as dust and musculoskeletal disorders as a result of working on major projects such as the building of the DNRC, which the research was centred on. This is good news and confirms that good practices ‘trickle down’ through the sector for health, as they do for safety.
“We still have a long way to go, particularly in terms of the way we educate our workers, managers and OH professionals about managing health risks and the way the industry manages health surveillance: but this research shows we are heading in the right direction.”
The research report, which includes recommendations for those leading on major construction projects and for the industry more widely is available here.
The B&CE Charitable Trust OH Research Award is awarded annually to research initiatives that aim to improve the occupational health in the construction industry. Applications for the 2019 award open later this year.
Source: UK Construction Online
FIS And SCI To Launch Steel Framing System Guide With Consortium Of Industry Partners
/in Home Page news feed, NewsFIS, representative body for the £10 billion finishes and interiors sector in the UK and the Steel Construction Institute (SCI), will launch the much-awaited Technical Report ED017 – Design and Installation of Light Steel External Wall Systems guide with a consortium of industry partners.
FIS and the Steel Construction Institute have been working with the FIS Steel Framing Systems (SFS) working group and industry to update guidance for the sector.
“SFS is the lightweight steel frame used to create the inner leaf of an external wall, it’s been around for over 20 years but its benefits are just being realised, which is why so many projects are using it, but there are problems being created because of a lack of planning and knowledge. It’s the first thing you see, but often the last thing that’s designed in a building, and that’s the issue. This development of this guide is a great example of how the supply chain can work together to share knowledge, support training and deliver quality, we are grateful to all involved.” Joe Cilia, Technical Director at FIS.
SFS is seen as non-load bearing, not holding the structure up but it is supporting cladding, internal linings insulation and perhaps even services. There are significant implications should it fail, which could lead to the external cladding falling off.
The report on the collapse of the brick cladding at Oxgangs Primary School Edinburgh on 29th January 2016 highlighted that there was a failure in the correct installation of a simple element -wall ties- and although there are no direct examples of this happening where SFS has been installed, it highlights the danger of ignoring the correct installation process. , this guide will help to ensure that everybody from designers to installers are clear about what is required.
Olton Bridge, 245 Warwick Road
Solihull, West Midlands B92 7AH
Telephone 0121 707 0077
Email info@thefis.org
Website www.thefis.org
The guide will spread best practice, help raise standards and educate clients and installers, and because the sector is new there are still a lot of client’s, designers and installers who will benefit from an education process driven by the document.
The guide will help avoid the issues caused by last minute changes.
The guide is for anyone who designs and installs SFS infill walls, and anyone checking that the products are being correctly installed, such as a ‘Clerk of Works.’ It will help to raise standards, show clients what SFS is and how it works. It will get people thinking about what is expected of them, the design and the final installation. It will give installers the confidence to question designs and provide guidance to ensure the installation is as good as it can be. The document includes check lists as well as guidance that makes people stop and check that all the information that should be provided, is provided.
As the landscape post-Grenfell develops, we envisage that it will be very different from the way in which buildings are being designed and constructed now, this guide will become the go to reference for all involved.
The SFS working group meeting will be held at Plaisterers’ Hall Offices, London on 16 May from 14:00–16:30. This will be followed by the launch of the much-awaited Technical Report ED017 – Design and Installation of Light Steel External Wall Systems guide. The launch event will run from 16:30-18:00. Spaces are limited and will be offered on a first come, first served basis.
To register please follow this link: https://www.thefis.org/events/sfs-working-group-meeting/
Source: UK Construction Week
Low-carbon heating to replace gas in new UK homes after 2025
/in Home Page news feed, NewsGas boilers will be replaced by low-carbon heating systems in all new homes built after 2025 in an attempt to tackle the escalating climate crisis, Philip Hammond has said.
In his spring statement, the chancellor said new properties would use alternative systems, such as heat pumps, to help the UK reduce its carbon emissions.
However, Hammond appeared to row back on implementing the full recommendations from the government’s advisory committee on climate change last month, which called for new homes to have no gas for cooking or heating from 2025.
The move away from gas heating in new homes was given a cautious welcome by environmental groups, although they said the chancellor had to be more ambitious, systemic and radical if the government was to get to grips with the climate emergency.
Housebuilders said they supported moves to more environmentally sustainable systems, but alternative heating was often more expensive and less effective.
A spokesperson for the Home Builders Federation said the ongoing “costs and comfort of homeowners was an absolute priority” for its members, pointing out that heat pumps required bigger radiators and did not work as well in cold snaps.
“New technologies are increasingly being incorporated that drive down emissions and we are committed to continuing to work with government on this … [however] it must be ensured that alternative heat sources are suitably attractive, available and efficient before withdrawing existing options,” he said.
The report from the committee on climate change said it would cost £4,800 to install low-carbon heating in a new home, but £26,300 in an existing house.
Around 14% of UK greenhouse gas emissions come from homes and last year emissions from housing increased – mainly from gas boilers.
The committee said that to meet the UK’s existing climate targets, considered too weak by many, all homes would have to virtually eliminate emissions in the future.
However, a spokesman for the Treasury said no funding had been allocated to support the move to sustainable heating systems, adding that the plan would go out to consultation later this year.
Hammond’s announcement on gas boilers was one of a series of environmental measures unveiled in his statement, alongside the protection of the waters around Ascension Island in the Atlantic, a new carbon offset scheme for aviation and a comprehensive global review of the link between biodiversity and economic growth, led by Prof Partha Dasgupta.
But environmental groups said the measures did not go far enough.
Mel Evans, a senior campaigner at Greenpeace UK, said although the plan to end fossil fuels in new homes was vital – and she welcomed the measures to protect wildlife – tackling the climate crisis required bigger thinking.
“Issues like the shoddy state of our existing housing stock and rapid adoption of electric vehicles require serious money behind serious policies,” such as banning new petrol and diesel cars and vans by 2030, she said.
Dave Timms, from Friends of the Earth, said: “The chancellor should have announced a massive programme of investment in home insulation and public transport, instead of pushing the false solution of carbon offsetting for aviation.”
Prof Sam Fankhauser, from the Grantham Research Institute on Climate Change at the London School of Economics, said the move was a “welcome step towards reducing carbon emissions” that had the potential to “significantly reduce emissions, especially if these are accompanied by measures to make homes more energy efficient.
“To be fully effective, stringent standards for new homes need to be complemented by more funding for energy efficiency upgrades in existing homes, such as for insulation and better boilers.”
Source: The Guardian
New energy efficient Domus Ventilation MVHR wall units launched
/in Home Page news feed, NewsDomus Ventilation, part of the Polypipe group, has launched the HRXE range of high performance Mechanical Ventilation with Heat Recovery (MVHR) units for small to medium size residential properties.
MVHR systems combine supply and extract ventilation in one system. They efficiently recover the heat typically lost in waste, stale air and use it to temper the fresh air drawn into the building via a heat exchanger. The filtered, pre-warmed air is distributed to areas of the home such as living rooms and bedrooms, effectively meeting part of the heating load in energy efficient dwellings.
Building on its success in MVHR, Domus has developed the HRXE units to provide even greater efficiency through advanced heat exchange proficiency and low Specific Fan Power (SFP). When used with a kitchen and one wet room, at typical installation, the HRXE provides a 90% heat exchange performance and boasts a very low SFP down to 0.57W/(l/s).
The new HRXE range is not only efficient, but also exceptionally quiet, with background (normal) ventilation at 24dB(A) (typically whisper quiet). Noise reduction can be further reduced through the use of an Anti-Vibration tray, which isolates the unit from the wall to reduce any low levels of vibration induced noise which can be distracting to residents.
There are four models in the HRXE range, all with a two year warranty and all featuring 100% thermal (summer) bypass which automatically activates when the air temperature reaches a pre-set level, allowing in cooler, fresh, filtered air without warming it through the heat exchanger.The smart design of the HRXE means there is no reduction in airflow when operating in bypass mode.
Within the range, models are available with integral humidity sensors, which is much in demand.By accurately measuring air humidity, the HRXE’s extract speed automatically changes from background to boost as the level of humidity increases, thereby providing optimal ventilation performance.
When it comes to installation, Domus Ventilation has designed the HRXE units to be even smaller than their predecessors making them ideal for wall-mounted cupboard installation, with opposite handed models available to meet different on-site requirements. Spigots on the top of the HRXE are 125mm, but with Domus Ventilation’s extensive duct portfolio, adaptors are available to enable direct connection to the most common ducting size – 204x600mm flat channel duct –for quicker and more cost-effective installation. Furthermore, integrated controls are accessed via a front panel for easy commissioning.
The HRXE range has been designed to work most efficiently when used with Domus duct systems, including its Flow Control Plenum and High Efficiency Green Line Bends, which reduce duct bend resistance by up to 60%. Domus duct systems offer improved system performance through the exacting tolerances and engineered fit of the system, whereby pressure drops are minimised and air leakage virtually eliminated.
Domus Ventilation has a well-deserved reputation for quality, supported by excellent technical support, from a market leading manufacturer and designer. It is well placed to offer immediate, practical solutions to Building Regulations Parts F & L.
Source: UK construction week
168,500 new jobs to be created
/in Home Page news feed, NewsCITB experts are predicting an extra 168,500 new construction jobs will be created over the next five years despite the uncertainty of Brexit.
The training body’s annual Construction Skills Network (CSN) report anticipates average annual industry growth of 1.3% until 2023.
That is down a third of a percent on last year’s forecast and is based on the scenario that the UK agrees an exit deal with the EU, rather than a ‘No Deal’ Brexit.
Despite the wider economic uncertainty approximately 168,500 construction jobs are to be created in Great Britain over the next five years – 10,000 more than in last year’s forecast.
Construction employment is expected to reach 2.79m in 2023 – just 2% lower than its peak in 2008.
Steve Radley, Policy Director at CITB, said: “Assuming that a deal is agreed, we expect low but positive growth for construction.
“Even as infrastructure slows, sectors like public housing and R&M are strengthening.
“This will see the number of construction jobs increase over the next five years, creating growing opportunities for careers in construction and increasing the importance of tackling the skills pressures we face.”
The CITB and industry trade bodies have published a plan to help brace the sector for tighter migration controls after Brexit.
Building After Brexit: An Action Plan for Industry identifies the need for construction to adopt a twin-track strategy: growing investment in the domestic workforce and driving up productivity, while working with Government to agree how to maintain access to migrant workers to give it the breathing space to adapt.
Recommendations include:
Steve Radley, Policy Director at CITB, sayid: ‘Construction needs a twin-track strategy, increasing investment in the domestic workforce and working with Government to agree how we can maintain access to migrant workers to give it the breathing space to adapt to changing rules.
‘The latest forecast has revealed over 168,000 new jobs will be created over the next five years and with a likely post-Brexit reduction to the availability of foreign workers, the industry must act now to avoid widening the skills gaps.
‘We must do more to attract new talent to the sector and get better at retaining and upskilling the current workforce. Finally, the sector must fully embrace digital skills in order to become more productive and mitigate the widening skills gap.’
Alasdair Reisner, Chief Executive at CECA, said: “The date for leaving the European Union is rapidly approaching and employers are finding it harder and harder to recruit the right people for their business.
“Recruitment is already very difficult for some key roles and this will be exacerbated once migration from the EU is reduced post-Brexit.
“We must work together, as an industry and with Government to target these gaps; boosting UK-based recruitment and training while looking to sensible migration from the rest of the world to meet demand.”
Brian Berry, Chief Executive of the Federation of Master Builders, said: “The single biggest issue keeping construction employers awake at night is the skills shortage.
“If we’re going to address this skills gap post-Brexit, the whole industry needs to step up and expand their training initiatives. Even Sole Traders can offer short term work experience placements and large companies should be aiming to ensure at least 5 per cent of their workforce are trainees or apprentices.
“But realistically speaking, the UK construction sector can’t satisfy its thirst for skilled labour via domestic workers alone.
“With record low levels of unemployment, we’ll always need a significant number of migrant workers too – particularly in London and the south east.
“The Government needs to work with construction to amend its Immigration White Paper and rethink the current definition of low-skilled workers.
“Level 2 tradespeople play a vital role in the sector and would currently be excluded, which is wrong. We urge Ministers to engage with the construction industry to help improve these proposals.”
Source: Construction Enquirer.com
Brexit will have no impact on the construction industry
/in Home Page news feed, NewsA detailed analysis of the UK’s withdrawal from the European Union, with or without a deal, has shown that it will have little or no impact on UK construction, according to Laing O’Rourke group finance director Stewart McIntyre.
He has lead an analysis of Brexit implications and explained his findings in the company’s 2018 financial review.
He said that: “Laing O’Rourke has analysed its current order book and pipeline and this review supports an assessment that, to date, a ‘no-deal Brexit’ would present minimal, if any, risk to current projects and liquidity forecasts. The business has also considered implications for the sector and, to date, has not identified any negative impact on the UK construction market either in the traditional built environment or infrastructure sectors. We are concluding that, based on evidence to date and assuming the sector’s clients continue with their projects, there are minimal risks to liquidity forecasts arising from any deterioration in revenue.”
He continues: “The business has conducted a detailed review of its staff and workforce with a full analysis across primary job families. Based on the most recent data, 16.1% of the total UK headcount are EU citizens and 23% of that total are Irish citizens who have the full ongoing right to work in the UK. This risk assessment has highlighted a dependency on EU nationals in certain job families and the business is monitoring developments in these areas, however, it is clear that earnings and rewards are such that it does not present a significant risk to staff retention, staff recruitment or the ability to comply with the minimum earnings threshold for securing visas.”
Mr McIntyre also finds little to fear should the UK have to revert to trading under World Trade Organization (WTO) rules. “The UK business buys assets such as tower cranes as part of its core business and has conducted a detailed analysis on potential tariffs based on the past 12-month record of direct imports from the EU and possible registration procedures available to mitigate import supply difficulties,” he writes. “No tariffs apply under WTO rules to the import of tower cranes and it is assumed that additional customs procedures will create delays of no more than seven days. Apart from construction capital assets, the level of direct EU imports is low and the estimated additional costs arising from a ‘no deal Brexit’ are deemed to be immaterial.”
He concludes with a caveat that continued vigilance is required. “In summary, there has been no change to the group’s workwinning methodologies, or material negative impact on current live projects or staff recruitment and attrition. However, with the political environment continuing to develop, few companies can declare themselves immune to the risks of withdrawal from the EU. The board will continue to monitor developments in the UK business and political environment, and remains vigilant to the need to respond to changes in market conditions such as freedom of movement, finance and tariff implications, disruption to supply of plant and equipment and key construction components, logistics, exchange rates and primary commodity prices as we approach 29th March 2019, and for the period immediately after any other withdrawal date.”
Laing O’Rourke’s phlegmatism in the face of political uncertainty is in contrast to concerns that the Construction Leadership Council (CLC) has aired to government. CLC co-chair Andy Mitchell has written to construction minister Richard Harrington, copying in the chief executive of the civil service, warning that “it will not be possible to mitigate all of the potential impacts of ‘no deal’”. These include employment issues, trade in construction products, the future regulatory regime for construction products and potential impact delaying projects and adding costs.
Source: The Construction Index